The difference between renovating to rent, sell, or stay
If there’s one thing that rivals Australia’s love of the property market, it’s our obsession with home improvements and renovations.
That’s right, once we own a property, we can’t wait to knock things down, add things in or make things more modern.
But not all renovations are created equal and nor should they be. After all, the reason for the renovation will determine what you do, how far you go and how much you spend.
With that in mind, here’s a quick guide when it comes to the difference between renovating to rent, sell, or stay.
Rental renovations
Renovating a property that will be rented out is all about creating a modern and seamless look that’s hard wearing.
You want the property to be tidy, appealing, and easy to maintain, with fixtures, flooring and additions that are functional yet make your ideal renter’s life easier.
On that note, it pays to consider exactly what type of renter the property will appeal to as you renovate.
For example, is it likely to be a family home? Because in that case a solid kitchen and extra storage are great renovation ideas.
If it’s a home that’s likely to be sought after by renters with pets, you might want to consider your flooring choice, and also extra fencing.
Meanwhile, if it’s an apartment that’s likely to appeal to professional couples, some upmarket fixtures might be in order.
Renovating for sale
Renovating prior to selling your property is about considering who your ideal buyer will be. Envisaging the people who are likely to buy your home helps determine the additions you might want to prioritise.
For example, if the property is likely to appeal to first home buyers then top of the line fixtures, fittings and improvements could be overcapitalising.
But if it’s a desired family home in a sought-after location, investing in upgrades such as a new kitchen or bathroom might be warranted.
When it comes to renovating to sell, it’s always a good idea to seek the guidance of your trusted agent, who can tell you the improvements that will reap a financial return versus those that won’t alter the value of your property.
Renovating your forever home
Renovating a home that you intend to live in and retain for the long-term is a very different proposition to renovating for rental and sale.
This is the opportunity to invest in the space that you call your own. It’s the chance to showcase your personality and also have the fixtures, fittings, spaces, and additions that really suit your needs.
That said, it’s also important to consider your long-term goals as part of the renovating process. In other words, what purpose will this property serve in your life? And how long do you envisage being there?
Is it your first home that you will use to reach the next rung on the property ladder? Is it your forever home where you intend to raise a family?
Considering this helps you weigh up how much to spend to ensure you are not overcapitalising.
